Not a Credit Event
On one hand I hope that the haircut is not a credit event, but if a 50% haircut does not trigger the CDS, I am wondering why would anyone buy heavily into the debt of any country facing a non-negligible probability of default.
Global Financial Crisis
Unless ECB pumps liquidity into the system on a grand scale, in the trillions, Roubini’s predictions may turn out to be only a prelude to the real thing. My two cents.
Tehnokrati me Politiki Empeiria kai Ohi Politiko me Oikonomiki Empeiria
Kato apo tis parouses sinthikes, i Ellada hreiazetai technokrati oikonomologo, i’ dinaton me kapoia empeiria stin politiki, kai ohi ena politiko karrieras me kapoia empeiria sta oikonomika. O telefteos den tha ehei vatheia gnosi ton oikonomikon kai tha endiaferetai gia epanoklogi me sinepeia na min pernei tis apofaseis pou hreiazontai. Einai i ora oi politikoi arhigoi na kanoun tin ipervasi kai na epilexoun tous kaliterous pou ehei o Ellinismos na prosferei, diladi atoma pou na xeroun ti tous ginetai kai einai diatethimenoi na pane kontra sta megala simferonta stin Ellada apo opou kai an proerhontai.
Papadimos’ Conditions
Papadimos’ conditions are reasonable. He is willing to run a coalition government; he is not willing to become a puppet…
The Denials That Trapped Greece
Read this article in the New York Times: The Denials That Trapped Greece.
Can we Put the Brakes on Please?
Let’s get this straight: Greece’s European partners should not hold the Greek nation responsible for the PM’s miscalculated or ill-advised political maneuver. The misstep can be handled internally. Let’s stop overreacting and humiliating an entire nation. History taught us that this never led anywhere. The Europeans, of all people, should know this very well.
Myths about The Greek Debt Crisis
We do not endorse all the points made in this article by Stergios Skaperdas, but we certainly find it interesting.
Missing the Point
The international media seems to be missing the point. Yes the referendum adds uncertainty and possibly infuriates Greece’s euro partners by seemingly undermining their decisions, however, it should calm down the Greek public uproar and provide an outlet to vent. It also sends a clear signal to the IIF for all banks to voluntarily accept the debt deal, and to Greece’s euro partners that Greek sovereignty cannot be compromised and no more austerity measures will be implemented or the people will not vote for the deal. In the mean time, Papandreou’s government has plenty of time until January to stir public opinion, provided the government survives.
The bigger current issue is the vote of confidence on Friday. Given today’s parliamentary defects, whether Papandreou’s government survives or not is highly questionable at this point.
Photo courtesy of www.Papandreou.gr
myEllada 